experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the “standard model” suffice to explain the broad contours of macroeconomic outcomes in …

This paper examines two important issues for a small high-inflation open economy with trade controls where the …

We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …

This paper investigates the relationship between the level of inflation and regional price-level convergence utilizing … micro-level price data from Turkey during two clearly distinguishable periods of high and low inflation. The results … indicate that higher persistence and slower convergence of price levels are evident during the low-inflation period, which …

This paper investigates the relationship between the level of inflation and regional price-level convergence utilizing … micro-level price data from Turkey during two clearly distinguishable periods of high and low inflation. The results … indicate that higher persistence and slower convergence of price levels are evident during the low-inflation period, which …

While two strands of the literature suggest that PPI inflation, in addition to or instead of CPI inflation, should be a … temporary, the standard monetary policy rule that does not target the PPI inflation may have become increasingly problematic. …

This paper investigates the drivers of Turkish inflation by using a structural vector autoregression model, where … monthly data on global oil prices, unemployment rates, inflation rates, policy rates and exchange rates are used. The … empirical results show that Turkish inflation increases following a negative policy rate shock, a positive exchange rate shock …

This paper develops a theory of inflation inertia based on forward looking staggered price setting in the nontradable … inflation rate take time even if they are fully credible, and they are associated with significant output losses in nontradables …

We analyze the impact of price stability-oriented monetary strategies (inflation targeting — IT — and constraining … exchange rate arrangements) on inflation persistence using a time-varying coefficients framework in a panel of 68 countries … (1993–2013). We show that explicit IT has a stronger effect on taming inflation persistence than implicit IT and is …